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This is a very long-term view of the DJI … and the importance of 1st Harmonic Uranus price lines in providing tops and bottoms in this index.
First Harmonic lines are at 360 degrees – and they are the most important lines. Jeanne Long also discovered something she decided to call “mirror” lines, which slope downwards, rather than upwards, and correlate very closely to price movements in downtrends.
We need to study this chart closely to really understand just how important these 1st Harmonic Uranus lines (red), and mirrors (pink), are to price action in the Dow Jones Industrials.
See how they effectively contained virtually almost all price movement for a period of more than two years during the top of the last Bull run?
See how the Uranus mirror provided the basic cap price of the Bull and the final stopping point for the last Bear’s closing prices?
And see how when it decisively breaks above, or below, it doesn’t stop until it hits the next line in the series!!
Uranus is extreme … and Saturn is sanity …
click
for printable PDF chart (Note:
charts can be zoomed in for larger viewing in the PDF format) |
And now we add a 180 degree Saturn price line to our big picture view of the DJI.
We just added some trees to the forest.
And looking back through the history of monthly price bars, we see just how many times Saturn & Uranus combined to provide quite precise price points for stopping rallies … and for stopping freefalls.
So … the last Bull peaked out at a Uranus mirror (combined with Saturn) and the bottom of the Bear stalled out at a Uranus mirror (combined with some help from Saturn).
This Bull hit the primary Uranus line, not the mirror. And, gee golly, Saturn was there, too! In January, it found support at Saturn … and in July it found support at primary Uranus.
Therefore … the Bear will not end until it hits the next level of Saturn/Uranus.
Since we’re talking “spooky”, this is The X File chart … with X being the exact price of next week’s Venus T-square, Saturn-Uranus opposition.
And the alternative scenario is … putting Saturn first.
On the previous charts, we mapped Uranus at 360 degrees and Saturn at 180 degrees.
In this chart, we’re reversing them because it provides an alternative scenario and price point.
The logical bits of my brain say the first scenario is probably more likely. Since the DJI peaked at primary Uranus, and found temporary support at primary Uranus, the history of the index suggests it should hit primary Uranus again before we have any real certainty this freefall is finished.
A rally into a price of 8893 on Monday, or Tuesday, of next week could start another drop … unless the price closes those days decisively above that level.
Now, spooky ‘strological squigglies are probably not something you should mention in the board room, confess to your neighbours, to go on talkback to ask Sarah Palin about.
But if you’re looking for a pretty good price point to watch for a turnaround on Wall Street …
Australia is not an Aqueerian
But the Big Fish and Ole Grizzly Guts are definitely important players.
I’ve put the 1st Harmonic Neptune price lines in dark blue … and it’s Neptune which seems to have more power in this index, although, once again, Saturn plays a very key role in helping determine Support/Resistance levels in the interim action between the big Neptunian moves.
Uranus is still a player – and we’ll see that in a moment when we look at the FTSE.
Once again, I’ve marked
next week’s Saturn/Uranus price crossing point with an “X”.
The price is 3710. If the ASX 200 hits that next Monday, or Tuesday,
and starts to bounce strongly … or if it goes a little below
and then shoots back above it … a tradeable
V-bounce is underway.
London
Are we getting the hang of this now?
Neptune in blue, Uranus in red … no “mirror” lines.
The last Bull peaked out at the big red, found halfway support at the red lite district, and finally found “bottom” at the next big red down the chain.
Let’s zoom in for a closer look.
FTSE 2
click
for printable PDF chart (Note:
charts can be zoomed in for larger viewing in the PDF format)  |
I used the previous chart just to highlight the apparent importance of Uranus and Neptune in the way the FTSE makes its big, long-term moves.
We now add some more detail … adding some Uranus mirrors and including Saturn.
It’s relatively easy to see that Saturn retains its importance in this index, just as it does in the DJI and the ASX.
The FTSE last week touched the first point from which a bounceback might occur – the point I’ve marked with an “A”.
However, with more downside
potential still showing in both the DJI and the ASX, it’s
unlikely this is “the” bottom for the FTSE.
Notice how the last Bear made one smooch of 1st Harmonic Uranus
and went into a huge V-bounce that launched the next major Bull
phase?
The not so spooky,
but definitely scary stuff:
Effectively, Wall Street opened closed on Friday. The futures had
reached downside limits where the Bozo Boyz had to step in and force
a moment’s calm reflection before allowing the “free”
markets to do their thing.
The Bozo Boyz – GeeDubya, King Hank and Helicopter Ben – have been part of the “delay” in finding a bottom. They keep saying and doing things which give the weak hands hope.
And one of those tired,
old Wall Street clichés states: Bull markets climb a wall
of worry and Bear markets slide down a slope of hope.
Thus, every time there’s an official intervention, it gives
hope to those who desperately want to sell, but hang on waiting
for the miracle.
In one way, it’s probably more than a tad gratuitous to blame the Bozo’s. Saturn versus Uranus is a nasty piece of work. I mentioned a few weeks ago that one of my Australian trading friends describes Saturn/Uranus aspects as a blunt “sudden death”.
Have another look at the sheer depth of the October price bars on most charts … it sure looks like “sudden death”!
To find a reliable bottom, we need an absolute absence of hope. New Lows on the NYSE hit 1125 on Friday, the 14th highest reading on record – and a lot of those abnormally high readings have been recorded in the past few weeks.
Friday’s figure seems tame compared with the 2900 new Lows hit on October 10th – and the volume wasn’t nearly as high either.
But, knowing what we know about the massive amount of leverage the hedge funds and mutual funds need to unload – and the fast-planet triggers reinforcing the Saturn-Uranus opposition in the first week of November and the first two weeks of December – we can probably make a reasonable assumption that a huge new wave of selling will occur when the first strong, bounceback rally begins to get legs.
I want to stress that point – there is a very strong likelihood another huge wave of selling will overwhelm the first bounceback rally.
A few weeks ago, I mentioned the possibility that anything that looks like a V-bounce has real potential to turn into a W, or even a VW.
Now, at this point, I think I’m supposed to quote something selectively pithy from last week’s report in a vain attempt (pun intended) to prove what a truly sagacious Sagittarian seer I am.
Never mind. I would, however, like you, dear reader, to consult last week’s report again because we discussed a scenario relating to the Bradley Model turn date in December and the potential impact of the Sun, Mercury and Mars T-squaring the Saturn-Uranus opposition.
In the meantime, we will have a look at some of the technical charts.
Volatility Index
The VIX continues to set new records of fear – and is even starting to break out above the technical divergence downlines in our favourite indicators.
I know we’re all tired of my talking about contradictions. But. This is another one. While the fear index continues to hit new spikes, the number of new Lows and the volume last week were not at the October 10th levels.
It actually is still dangerous out there – even for very short-term traders.
As we come into this week, Mars is strongly in play – squaring the Node, and hitting the midpoint of the Jupiter-Saturn trine as it sextiles both of them from its second home in the sign of Scorpio.
Capping that, we also have a New Moon in Scorpio this week – and a three-day Fibonacci cluster of potential turn dates on Monday, Tuesday, and Wednesday, leading up to the New Moon.
And that’s what scares me!
Dow Jones Industrials
click
for printable PDF chart (Note:
charts can be zoomed in for larger viewing in the PDF format) |
And what scares me is this … that “hope” will revive and the markets will turn up before we run into next week’s Venus T-square to the Saturn-Uranus opposition.
We need to watch this week’s
action carefully – because if the markets go up, we will need
to look at the alternative scenario I outlined back on Page 4. If
the DJI rises up into a price of 8893 on Monday/Tuesday of next
week, we could be looking at another monthlong
decline into early December.
Too early to tell yet; another reason why this week will continue to be dangerous.
Technically, the DJI broke
to the upside of the small triangle I showed last week, but got
stopped by the second line I had to add as trading unfolded. The
important point here is that on Wednesday it closed below the uptrend
line and didn’t recover on Thursday or
Friday.
There is still positive divergence showing in the technical indicators … and while the DJI closed lower than October 10th, the tails on the price bars are showing Support is coming in at these levels.
S&P 500
And we have a similar performance in the 500 – which didn’t actually close below the bottom of the triangle until Friday.
So far, the CCI is holding to the positive divergence line; the Stochastics have not cut as deeply; and the MACD histograms are still much higher than earlier in the month.
This may be one occasion where we’d actually like to see the tech indicators fail – so that markets drop into Monday/Tuesday of next week, rather than put on a short-lived rally which seems doomed to collapse.
I repeat again … this market remains dangerous in the extreme. But the “spooky” charts in the first few pages do give us the advantage of being able to sit this week out with relative calm to see if our long-term planetary price lines hold the price action.
Do we need reassurance?
Nasdaq Composite
Well, here it is … Uranus lines and mirrors on that most Aquarian/Uranian of indices, the tech-heavy Nasdaq.
Is there a single major turning point anywhere in this chart where the turn did not come as the index hit one of these Uranus lines?
Have these Uranus lines not only identified the price peaks, but also the precise price level where strong Support will come into play?
Has this happened time and time again over the past 18 years?
Will it fail this time … is this time different? It looks pretty unlikely.
We just need to see what unfolds this week to try to determine which of these potential turning points is likely to be hit next Monday/Tuesday.
London
The FTSE continues to behave quite predictably within its downtrend channels.
I indicated last week the FTSE was likely to bounce back to the top of the currently activated channel.
I said: “There is divergence in the indicators suggesting the next move is back to the top of the currently-activated channel which held last week’s upside and downside.
The price target of 4670 is beginning to look a tad optimistic – and the reality is the FTSE is also vulnerable to another steep dive unless it can break decisively above that first layer of diagonal Resistance.”
Which is what we got. The index couldn’t break decisively above the channel line and that left it vulnerable to a move back to the bottom of the channel.
There is still positive divergence in the indicators and if you recheck the “spooky” chart on Page 7 – FTSE 2 – this index actually doesn’t have much further to fall before kissing the primary Uranus line.
ASX 200
The ASX 200 has fallen below the October 10th “bottom” – with some positive divergence remaining in some of the indicators, though it’s not as strong as it was a week ago.
The index is opening gaps – with the highest one at 4757.
That will be a legitimate target for a future rally, but is most unlikely to be reached without some stalling along the way.
We’re aware of the potential stalling points for rallies, the technical levels rather than the planetary price levels, because we have them marked on the weekly chart.
ASX 200 Weekly
Here they are again –
and they’ll all remain legitimate for the intermediate-term,
regardless of where we go in the next 6 to 7 trading days.
I’ve warned that the uptrend line in the CCI could now act
as Resistance … and that is a high possibility now that the
MACD signal lines and histograms have both broken their lines quite
strongly.
The Stochastics are starting to turn in deeply oversold territory. Once again, we need to remain ultra cautious while the Saturn-Uranus price crossing point shown on Page 5 acts as a magnet, pulling the price down...
Special Alert for ASX Traders - Click here to download the chart and additional comments "Special Alert for ASX Traders" PDF report:
"If a crash leg develops in the coming week, there are additional downside targets for the ASX 200 which need to be taken seriously before you consider whether to go Long.As well as the Venus/Saturn/Uranus price crossing levels to be aware of, if another crash leg develops there is an even lower Neptune price line to which the 200 could overshoot.
This is a worst-case scenario, but because Neptune is a very significant price line on the ASX 200, we should be aware of the potential to hit it if a crash develops."
Now, yet again, dear reader, I’m going to end this without looking at the other major EuroAsian indices. But, I’ll do a little work on the spooky ‘strological squigglies during the week to see if we might not be able to find precise price points for those indices should the old Greco-Roman Gods bring us down into Saturn’s new knackering of Uranus!
Good luck - RA
*Jeanne Long, professional trader and a leader in the research of financial astrology, was a student of the works of W.D. Gann. She has authored several books on financial astrology and developed the principles used in all the Galactic Investors Astrology software. Randall's charts are created using the Quick Harmonic Trader Software, by P.A.S. Astro-Soft, Inc. makers of Galactic Investor Astrology software
The World At Large is delivered in advance to Astrological Investing Premium Member subscribers. Randall Ashbourne is a former journalist and political strategist residing in Australia.
***
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